International Advance Technology Education Center
I.A.T.E.C. Computer College, Inc.
Sta. Rita, Pinamalayan, Oriental Mindoro
Samsung Electronics Co., Ltd.
A Case Study
Presented to the Faculty of Engineering
As Partial Fulfillment in Engineering Management
Geminiano M. Cordero Jr.
Nico S. Sajul
Charlie M. Fanoga
Jakeson S. Javier
Jonh Phillip N. Fransisco
Engr. Robert Belarmino Ramos
Samsung Electronics Co., Ltd.
According to the founder of Samsung Group, the meaning of the Korean hanja word Samsung (三星) is "tristar" or "three stars". The word "three" represents something "big, numerous and powerful"; the "stars" mean eternity.
1. 1969 to 2000
Samsung Electric Industries was established as a subsidiary of Samsung Group in 1969 in Suwon, South Korea. Its early products were electronic and electrical appliances including televisions, calculators, refrigerators, air conditioners and washing machines. In 1970, Samsung Group established another subsidiary, Samsung-NEC, jointly with Japan's NEC Corporation to manufacture home appliances and audiovisual devices. In 1974, the group expanded into the semiconductor business by acquiring Korea Semiconductor, one of the first chip-making facilities in the country at the time. The acquisition of Korea Telecommunications, an electronic switching system producer, was completed at the start of the next decade in 1980. By 1981, Samsung Electric Industries had manufactured over 10 million black-and-white televisions. In February 1983, Samsung's founder, Lee Byung-chull, made an announcement later dubbed the "Tokyo declaration," in which he declared that Samsung intended to become a DRAM (dynamic random access memory) vendor. One year later, Samsung became the third company in the world to develop a 64kb DRAM.] In 1988, Samsung Electric Industries merged with Samsung Semiconductor & Communications to form Samsung Electronics. Samsung Electronics launched its first mobile phone in 1988, in the South Korean market. Sales were initially poor and by the early 1990s Motorola held a market share of over 60 per cent in the country's mobile phone market compared to just 10 per cent for Samsung. Samsung's mobile
phone division also struggled with poor quality and inferior products until the mid-1990s and exit from the sector was a frequent topic of discussion within the company. Samsung Electronics acquired a 40 percent stake in AST Research, a United States-based personal computer maker, for US$378 million in February 1995. In 1996, the company devised a plan to sponsor major sporting events, resulting in it becoming an official sponsor for the 1998 Winter Olympics held in Nagano, Japan. In December 1998 Samsung Electronics agreed to sell its power-device division to Fairchild Semiconductor Corporation for US$455 million.
2. 2000 to 2010
For four consecutive years, from 2000 to 2003, Samsung posted net earnings higher than fivepercent; this was at a time when 16 out of the 30 top South Korean companies ceased operating in the wake of the unprecedented crisis.
In 2005, Samsung Electronics surpassed Japanese rival, Sony, for the first time to become the world's twentieth-largest and most popular consumer brand, as measured by Interbrand. In 2006, BusinessWeek rated Samsung in twentieth place on its list of global brands and second in the electronics industry. The publication also ranked Samsung as twentieth in terms of innovation. In 2007, Samsung Electronics became the world's second-largest mobile-phone maker, overtaking Motorola for the first time. In 2009, Samsung achieved total revnues of US$117.4 billion, overtaking Hewlett-Packard to become the world's largest technology company measured by sales. Furthermore, the company's semiconductor division is the world's largest producer of memory chips and the second largest for semiconductor manufacturing. In 2009 and 2010, the US and EU fined the...
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